SWG CGL – Excess & Umbrella Stops Coverage Problems Before They Start

Apr 2020

SWG CGL – Excess & Umbrella Stops Coverage Problems Before They Start

One of the greatest challenges facing the auto parts manufacturing industry right now are labour gaps. According to a 2019 report, the manufacturing industry suffers globally from a widening skills gap, and this problem is largely caused by market fluctuations and changes in the availability of skilled artisans. (1)


Shortages heighten the risk that something will go wrong, potentially leaving the company in deep water. In fact, Canadian businesses are sued frequently, but their policies might not be providing them adequate coverage.


SWG CGL: Excess and Umbrella will provide insureds with coverage and limits that will complement conventional CGL or PL insurance policies to ensure that clients have ample coverage as required.


What’s At Risk


No matter how comprehensive a company’s safety precautions, there are always risks that something could go wrong, and this risk is only heightened when employees are overworked or put under added strain from labour shortages. Following are some of the major exposures for auto parts manufacturers.


● Because they work on such a large scale, auto parts manufacturers need added protection for their machinery and equipment, as well as for stock and finished products.

● Bodily injury and property damage are always a factor in manufacturing work sites, and the damages from these incidents can vary widely. The manufacturer could be held financially liable for medical and other expenses associated with these damages.

● A manufacturing company could also be held responsible for accidents, injury, or death involving its products. In such cases, the manufacturer might be forced to recall its products and could face a lawsuit over automotive defects or false advertising.

● Auto parts manufacturers work with potentially hazardous substances that could be released into the environment during operations.


SWG’s Excess & Umbrella: What’s Under the Hood


SWG CGL – Excess & Umbrella insurance is designed to protect the products or services of small and large businesses like critical parts and auto partsmanufacturers. Our CGL covers a business’ broad range of needs, while Excess & Umbrella coverage takes care of losses beyond the limits of an underlying policy. This gives the client added liability protection when the underlying liability has reached its limits.


Excess insurance and Umbrella insurance provide similar types of coverage, but with key distinctions. For instance, an Umbrella policy works almost the same way as Excess policy, except it can:


  1. Be applied to multiple underlying liability policies, such as General Liability policy, E&O Policy, Automobile Liability, and many more;
  2. Drop down when an underlying policy’s aggregate limits are exhausted.

Coverage highlights include:

● Our policies include contractual liability

● Cross liability

● Contingent employer’s liability

● Product Completed Operations coverage (Broad Form)

● Our policies are on occurrence form, we can however also offer claims made option

● Our policies can offer enhancement coverage to include, Faulty Workmanship, Product Recall coverage, Employee Benefit, Employer’s Comprehensive Bodily Injury Liability, Sub-limits for Errors & Omissions, as well as Manufacturer’s E&O and Employment Practices Liability

● Limits up to $10,000,000

● Deductibles start at $1,000 and can be customized to the size of the business or type of operation

● Coverage can be provided for sales into the U.S. and Worldwide


Visit our website for more details

Content is current as of the date of broadcast and is subject to change without notice.




  1. https://www.worldmanufacturingforum.org/report-2019